NHAI rolls out attractive tax-free bonds with 15-year maturities

In a bid to raise Rs 10,000 crore, the National Highways Authority of India (NHAI) is starting sale of tax-free bonds, thereby giving retail investors an opportunity to ensure steady returns.

Investors, who will get 7.39-7.60 per cent interest on paper with 10-15 year maturities, will be able to invest up to 40 per cent of the total issue size.

"We expect the 10-year (benchmark) yield will move towards 7.64 per cent from 7.78 per cent now. The subscription will go through easily," Deepak Panjwani, head of debt markets at GEPL Capital, told ET.

NHAI is not new as NTPC, Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have also come out with such bonds at Rs 750 crore each.